PNX Petroleum Singapore Pte. Ltd, a wholly-owned subsidiary of Phoenix Petroleum Philippines Inc., recently signed a partnership agreement with Singapore-based Hengyi Industries International Pte. Ltd. over a liquefied petroleum gas offtake venture in Brunei.
The latest LPG venture of Phoenix Petroleum in Brunei is expected to support its LPG expansion in both the Philippines and Vietnam in a bid to strengthen its network.
The partnership, signed by PNX Petroleum Singapore Pte. Ltd. director Henry Albert Fadullon and HYII director Chen Lian Cai, will allow PNX to off-take LPG from Hengyi Brunei refinery’s future production.
“As we continue to expand the brand internationally and establish strong connections with complementary businesses from neighboring countries, we are relentless in forging ties with companies like HYII to be able to provide quality products and services to more and more communities,” Fadullon said.
The off-take agreement is expected to start within the year after PNX recently acquired PNX Conqueror—the company’s first pressurized LPG carrier with 2.5 kilotonnes capacity–long with a long-term charter of Chelsea, another large pressurized vessel with a 4.6kT capacity, in preparation for the venture.
“With another milestone partnership, we are optimistic and excited about the future of this project as it opens new opportunities and possibilities for growth and progress for both companies and countries,” Fadullon said.
The partnership is expected to improve the Philippines’ overall supply situation because of the proximity to Brunei. It will take a day to deliver supply to the Philippines.
The venture will also beef up Phoenix’s petroleum source from its usual suppliers—China, Vietnam, Korea and the Middle East.
Phoenix Petroleum’s subsidiaries have been expanding LPG business since early this year.
Phoenix LPG Philippines Inc. in March started opening Phoenix SUPER Hubs in different parts of the Philippines.
PNX Energy International Holdings Pte Ltd., meanwhile, recently entered the Vietnam LPG market through the establishment of Phoenix Vietnam Pte. Ltd.